International consortium, led by Abu Dhabi's National Oil Company (ADNOC), has withdrawn its indicative $18.7 billion offer to acquire Australian oil and gas producer Santos.
The consortium, led by ADNOC’s investment arm XRG, said it will not proceed with a binding offer for Santos.
While the XRG-led consortium maintains a positive view of the Santos business, a combination of factors, when considered collectively, have impacted the consortium’s assessment of its indicative offer, it said.
Following a comprehensive evaluation, and taking into account all commercial factors and the terms of the Scheme Implementation Agreement (SIA) required by the Santos Board, the consortium has determined that it will not be proceeding with the proposed transaction.
“While disappointed not to move forward, XRG, and its Consortium partners, are responsible, disciplined investors with a clear focus on creating value for our shareholders and driving long-term growth.
“The consortium extends its appreciation to the Santos management team for their assistance in the process, as well as all levels of government and other stakeholders for their positive and constructive engagement. This reinforced our confidence in Australia’s energy and investment environment, as well as the other locations that Santos operates,” the consortium, consisting of XRG, Abu Dhabi Development Holding Company (ADQ) and private equity firm Carlyle, said.